2011-02-18 07:00:00 CET
2011-02-18 07:00:03 CET
REGULATED INFORMATION
Salcomp Oyj - Financial Statement Release
NET SALES INCREASED STRONGLY AND MARKET SHARE IN MOBILE PHONE CHARGERS IMPROVED - OPERATING PROFIT STILL UNSATISFACTORY
Salo, Finland, 2011-02-18 07:00 CET (GLOBE NEWSWIRE) -- Salcomp Plc Financial
Statements Release 18 February 2011 at 8:00 a.m. Finnish time
Salcomp Plc Financial Statements Release 2010
NET SALES INCREASED STRONGLY AND MARKET SHARE IN MOBILE PHONE CHARGERS IMPROVED
- OPERATING PROFIT STILL UNSATISFACTORY
October-December 2010:
-Net sales increased by 29% to EUR 80.7 million (EUR 62.7 million in
October-December 2009).
-Number of chargers delivered increased by 17% to 81.9 million pieces (69.8
million pieces).
-Market share in mobile phone chargers was some 23% (21%).
-Operating profit weakened by 16% to EUR 2.5 million (EUR 3.0 million).
-Operating profit, excluding the exchange rate gains/losses, was EUR 2.3
million (EUR 2.8 million).
-Earnings per share were EUR 0.06 (EUR 0.06).
-Cash flow from operating activities, excluding the change in selling of
receivables, was EUR 6.1 million negative (EUR 6.1 million positive).
January-December 2010:
-Net sales increased by 25% to EUR 299.0 million (EUR 239.5 million in 2009).
-Number of chargers delivered increased by 22% to 296.6 million pieces (243.3
million pieces).
-Market share in mobile phone chargers was some 23% (21%).
-Operating profit weakened by 5% to EUR 9.7 million (EUR 10.2 million).
-Operating profit, excluding the exchange rate gains/losses, was EUR 8.9
million (EUR 10.0 million).
-Earnings per share were EUR 0.20 (EUR 0.13).
-Group's net interest-bearing debt was EUR 0.9 million (EUR 0.2 million).
-Cash flow from operating activities, excluding the change in selling of
receivables, was EUR 6.5 million positive (EUR 4.2 million positive).
-Cash and cash equivalents at the end of the year were EUR 18.6 million (EUR
18.9 million).
-The Board will propose to the Annual General Meeting of Shareholders that a
dividend of EUR 0.07 per outstanding share for 2010 be distributed.
Outlook for 2011:
-Salcomp's net sales in 2011 are expected to be EUR 280-320 million.
-The operating margin in 2011 is expected to be 2-4% of the net sales.
-Due to the strategy revision of a major customer, Salcomp's outlook for 2011
is more uncertain than usual.
Markku Hangasjärvi, President and CEO:
”According to estimates made by market research companies and Salcomp, some
1.26 billion mobile phones with registered trademarks were sold globally during
2010, up by some 10% compared with 2009.
The number of chargers delivered and Salcomp's net sales grew significantly in
2010. We were clearly able to grow faster than the market and therefore
strengthened our market leader position in mobile phone chargers where our
market share improved by 2 percentage points to 23%.
Despite the increase in net sales, the operating profit remained at an
unsatisfactory level and weakened by 5% compared with 2009. Operating profit
was weakened by more expensive materials and components and a rise in labor
costs. In addition, accelerated efforts in broadening the product range and
customer base increased fixed costs.
In 2010, we introduced new product platforms for both low and medium power
range charging solutions. In addition, we launched our own CHARGZ charger brand
on the market. These efforts, together with an estimated growth of some 7% in
the mobile phone market, lay a good foundation for Salcomp's continued success
in 2011.”
Financial development in October-December 2010
In the last quarter of the year, Salcomp's net sales increased by 29% to EUR
80.7 million (EUR 62.7 million in October-December 2009). The number of
chargers delivered increased by 17% to 81.9 million (69.8 million) pieces. In
addition to the growth in the number of chargers delivered, net sales were
increased due to higher average sales prices of chargers, which resulted mainly
from exchange rate changes, as well as a product mix consisting of more
expensive products, especially smart phone chargers.
According to estimates of market research companies and Salcomp, some 360
million mobile phones with registered trademarks were sold during the last
quarter of the year, which is, according to Salcomp's estimate, some 8% more
than during the last quarter of 2009. Salcomp's market share in mobile phone
chargers was approximately 23% (approximately 21%).
Despite an increase in the net sales and in the average sales prices of
chargers, Salcomp's operating profit in the last quarter of the year weakened
by 16% to EUR 2.5 million (EUR 3.0 million). This was due to a further rise in
material and component prices and higher labor costs than during the previous
year. Operating profit was improved by realized and unrealized exchange rate
gains of EUR 0.2 million. The operating margin in October-December 2010 was
3.1% (4.8%).
The Group's net finance expenses were EUR 0.0 million (EUR 0.2 million). The
finance expenses for the last quarter of the year include EUR 0.0 million of
gains (EUR 0.3 million of gains) due to the exchange rate differences in
intragroup loans.
Taxes for the quarter totaled EUR 0.3 million (EUR 0.5 million). Taxes in the
comparison period include a deferred tax of EUR 0.3 million, resulting from the
parent company's tax-deductible goodwill amortization. The goodwill was fully
amortized in October 2009.
The profit for the period amounted to EUR 2.3 million (EUR 2.4 million).
Earnings per share were EUR 0.06 (EUR 0.06), and diluted earnings per share
were EUR 0.06 (EUR 0.06).
Cash flow from operating activities amounted to EUR 3.8 million negative (EUR
6.2 million positive). Cash flow from operating activities decreased compared
with the previous financial year, mainly due to the change in working capital.
The cash flow from operating activities, excluding the change in selling of
receivables, was EUR 6.1 million negative (EUR 6.1 million positive).
FINANCIAL YEAR 2010
Business environment
In 2010, the mobile phone market recovered from the global financial crisis
faster than many other businesses. According to the estimates, some 1.26
billion mobile phones with registered trademarks were globally sold in 2010, up
by some 10% compared with 2009. In addition, many of the other consumer
electronics markets related to Salcomp's business grew in 2010.
According to Salcomp and market research institutes, markets of various low and
medium power range charger solutions (<150 W), including mobile phone chargers,
grew in 2010 by some 8% resulting to some EUR 3.7 billion.
In 2010, challenges were caused by raw material prices which rose strongly, as
well as by a higher-than-expected increase in labor costs. Further challenges
were caused by occasional material shortages in the entire delivery chain due
to the strong market growth, as well as a labor shortage in the beginning of
the year, especially in China.
The standardization of charger technologies, a topical issue for several years
already, proceeded. At the end of 2010, a charger standard for smart phones was
published in Europe which is expected to be applied in the EU area during 2011.
However, the new charger standard is in the short run estimated to have only
minor impacts on leaving the charger out of the smart phone box, as an adequate
number of chargers manufactured according to the new standard should at first
be launched in the market. In addition to mobile phones, the development of
charger standardization for notebooks, netbooks and tablets also proceeded in
2010.
Net sales
In 2010, Salcomp's net sales grew by 25% to EUR 299.0 million (EUR 239.5
million in 2009). The number of chargers delivered increased by 22% to 296.6
million (243.3 million) pieces. In 2010, the market share in mobile phone
chargers was some 23% (some 21%).
Result
The operating profit weakened by 5% to EUR 9.7 million (EUR 10.2 million). This
was due to higher material and component prices and an increase in labor costs
partly due to lower productivity compared with the previous year. Productivity
was lowered by ramping up new products, adding new capacity and facing material
shortages causing disturbances in manufacturing. In addition, accelerated
efforts in broadening the product range and customer base increased fixed
costs. The operating profit was improved by some EUR 0.8 million (EUR 0.2
million) in realized and unrealized exchange rate gains. The operating margin
in 2010 was 3.2% (4.3%).
The Group's net finance expenses were EUR 0.7 million (EUR 1.1 million). The
finance expenses for the period include EUR 0.7 million of gains (EUR 1.0
million of gains) due to the unrealized exchange rate differences in
intra-group loans.
Taxes for the financial year totaled EUR 1.1 million (EUR 3.9 million). Taxes
for the financial year include deferred tax assets of EUR 0.9 million related
to tax losses carried forward. The Group has earlier recognized EUR 2.8 million
of the deferred tax assets. Taxes in the comparison period include a deferred
tax of EUR 2.5 million resulting from the parent company's tax-deductible
goodwill amortization. The goodwill was fully amortized in October 2009.
The profit for the period amounted to EUR 8.0 million (EUR 5.3 million).
Earnings per share were EUR 0.20 (EUR 0.13) and diluted earnings per share EUR
0.20 (EUR 0.13).
R&D
The Group's R&D expenditure was EUR 6.9 million (EUR 5.3 million) in 2010, or
2.3% (2.2%) of net sales. R&D focused on developing new products for current
and new customers, and constant improvement in the cost structure of existing
products.
According to its strategy, Salcomp also focused on developing new product
platforms and the accessory charger business. Salcomp introduced two of its own
product platforms in 2010. Chargers produced according to the Twist platform
are the first chargers in the market in which the stand-by consumption is
literally zero. Matrix power adapter platform broadens Salcomp's product range
in medium power range charging solutions. Products based on the Matrix platform
are suitable, among others, for point-of-sales devices, netbooks, modems and
routers, as well as for industrial applications and consumer electronics. In
addition, Salcomp introduced its own charger brand, CHARGZ, for retail sales.
Accessory chargers under the brand will be sold through the selected retail
channels and operators. The launch will first take place in North America
followed by Europe and Asia.
Capital expenditure
Capital expenditure in the financial year amounted to EUR 9.0 million (EUR 1.6
million). The capital expenditure mainly involved increasing the production
capacity in the low and medium power range chargers, as well as increasing the
automation level.
Financing
Cash flow from operating activities in 2010 amounted to EUR 9.7 million
positive (EUR 3.2 million positive). The cash flow from operating activities
increased compared with the previous financial year mainly due to the change in
working capital. The cash flow from operating activities, excluding the change
in selling of receivables, was EUR 6.5 million positive (EUR 4.2 million
positive). Cash and cash equivalents at the end of year were EUR 18.6 million
(EUR 18.9 million).
The Group's equity ratio at the end of year was 40.6% (44.9%) and gearing was
1.1% (0.3%). Net interest-bearing debt totaled EUR 0.9 million (EUR 0.2
million) at the end of the year.
In June, Salcomp signed an agreement concerning the renewal of the company's
financing arrangements. This amended the loan arrangements that were signed in
June 2009. The amendments to the loan arrangements improve the Group liquidity
and reduce the interest expenses. The syndicated loan of EUR 25 million agreed
with Nordea Bank Finland Plc and Merchant Banking, Skandinaviska Enskilda
Banken AB (publ) is divided in a EUR 15 million long-term loan and a EUR 10
million long-term revolving credit limit. The loan period is 3 years. The terms
and conditions of the Facilities contain market customary covenants and
undertakings and security cover for the Group. On 31 May 2010, Salcomp repaid
the capital loan of EUR 3 million agreed in December 2008 and the capital loan
of EUR 7 million agreed in June 2009, as well as the interests related to them
totaling EUR 1.3 million. The capital loans, in accordance with chapter 12 of
the Finnish Companies Act, were granted by Nordstjernan AB, the majority
shareholder of Salcomp. Renewing the Group's financial package involved a
one-off cost of approximately EUR 0.2 million.
In addition to the above, the Group has acquired working capital financing in
India in 2010. The total limit of the financing is EUR 6 million. The financing
consists of three elements: selling of receivables, financing accounts payable
and working capital loan. The financing is annually renewed. The terms and
conditions of the loan contract contain undertakings and security cover for the
Group.
The Group had an unused revolving credit limit of EUR 10 million at the end of
the year.
Environment and quality
The management of Salcomp's environmental and quality issues is based on the
Group's environmental and quality policies, development programs and
guidelines, as well as its risk management strategy. The focus in the
management of environmental and quality issues is to minimize and prevent the
effects on the environment and people.
The Group's production plants are ISO 14001 and ISO 9001 certified. In
addition, Salcomp has the environmental permits required for its operations.
The total amount of harmful chemicals used in production is small, and no
harmful emissions are caused by the processes.
Salcomp operates with global customers who, in addition to authorities,
regularly conduct quality and environmental audits. In 2010, 92 audits were
conducted in Salcomp's systems and processes. The results and feedback based on
these audits are used for constant development of the processes.
In environment and quality issues in 2010, Salcomp concentrated on improving
the energy-efficiency and lowering the stand-by power of chargers. In addition,
attention was focused on improving the energy-efficiency of the production
plants. Electricity consumption was decreased by improving lighting and heating
systems and water consumption was decreased by enhancing cooling systems.
Personnel and management
The number of Group personnel at the end of year totaled 10,350 (7,900): 6,144
were employed in China, 2,518 in India, 1,620 in Brazil and 68 in Finland and
other countries. The number of personnel increased mainly due to the rise in
production volumes.
Salcomp's President and CEO during the financial year was Markku Hangasjärvi.
Other Management Team members were Hannu Hyrsylä (Sourcing), Pekka Kyyriäinen
(Operations), Antero Palo (Sales & Marketing), Juha Raussi (R&D) and Jari
Saarinen (CFO). Vincent Hsiao (Power Solutions) and Tiina Vartiainen (Human
Resources) started as new members of the Management Team on 1 January 2011.
Niilo Oksa, Corporate Vice President, Human Resources, retired as of 30
September 2010.
Shares and shareholders
Salcomp's registered share capital amounts to EUR 9,832,735.12, divided into
39,023,840 fully paid outstanding shares and 337,000 shares in the possession
of the company. The shares in the possession of the company were acquired
through share issues carried out in 2010 related to the share-based incentive
programs. The company has one series of shares, and all the shares entitle the
shareholder to equal rights in the company.
Salcomp's share price fluctuated between EUR 1.73 and EUR 2.19 in 2010. The
average share price during the year was EUR 1.99 and the closing price at the
end of the year EUR 1.97. Share trading amounted to EUR 4.2 million and 2.1
million shares. According to the book-entry system, Salcomp had 1,089
shareholders at the end of the year. Foreign ownership at the end of year was
77.8% and the market value for outstanding shares EUR 76.9 million.
In May, the Board of Directors of Salcomp approved two new share-based
incentive programs for the Group key personnel: a Matching Share Program
targeted at the members of the Extended Global Management Team, as well as a
Performance Share Program targeted at 53 key employees including also the
members of the Extended Global Management Team. Both incentive programs include
one earning period, calendar years 2010-2012.
Based on the resolutions on the new incentive programs, the Board resolved,
pursuant to the authorization by the Annual General Meeting on 24 March 2010,
to offer new shares for subscription for the Group's key personnel. A total of
48,650 new shares in Salcomp were subscribed for in the directed issue,
corresponding to approximately 0.12% of the company's share capital. The new
shares were entered in the Trade Register on 24 June 2010. The subscription
price of the shares, i.e. EUR 1.98 per share totaling EUR 96,327, has been
placed in the company's invested free equity. In addition, the company itself
has subscribed for 337,000 new shares in accordance with the terms and
conditions of the share issue to the company itself. The said shares may be
used to fulfill the commitments related to the key employees' incentive
programs. The admittance of the new shares to trading at the NASDAQ OMX
Helsinki Ltd took place on 24 June 2010.
Salcomp has a stock option program for the key personnel, approved by the
Annual General Meeting in 2007. A total of 1.6 million stock options 2007A,
2007B and 2007C were distributed to the Group key personnel at the end of 2010.
The rest of the stock options, 445,500 stock options, were granted to Salcomp
Manufacturing Oy.
Annual General Meeting 2010
Salcomp Plc's Annual General Meeting was held on 24 March 2010 in Helsinki. The
AGM approved the 2009 financial statements and discharged the members of the
Board and the President and CEO from liability for the financial year.
In accordance with the Board's proposal, the AGM decided that repayment of
capital of a total of EUR 2,728,263.30 (being EUR 0.07 per share) will be
distributed to the shareholders from the Company's invested unrestricted
equity. The repayment of capital was paid on 7 April 2010.
In accordance with the Board's proposal, the AGM decided that no dividend for
2009 will be paid.
The AGM decided that the number of members of the Board of Directors remains at
five. The AGM re-elected Mats Heiman, Kari Vuorialho, Carl Engström and Jukka
Rinnevaara as members of the Board of Directors and elected Petri Kähkönen as a
new Board member until the conclusion of the 2011 Annual General Meeting. The
AGM appointed Mats Heiman as the Chairman and Kari Vuorialho as Vice Chairman.
The AGM decided to leave the remuneration for the Board of Directors unchanged:
the remuneration for a full term will be EUR 40,000 for the Chairman, EUR
32,000 for the Vice Chairman and EUR 25,000 for the members.
At its organizing meeting following the AGM, Salcomp's Board of Directors
concluded that due to the Company's size and composition of the Board of
Directors, it is not necessary to establish any separate Board committees. The
Board of Directors further stated that all Board members are independent of the
Company, and Petri Kähkönen, Jukka Rinnevaara and Kari Vuorialho are also
independent of the Company's significant shareholders.
KPMG Oy Ab, Authorized Public Accounting Firm, continues as the Company auditor
and Pauli Salminen, APA, as the responsible auditor.
In accordance with the Board's proposal, the AGM decided to amend the method
and minimum period for publishing the convening notice to the AGM in Article 8
of the Company's Articles of Association, due to the amendment to the Finnish
Companies Act.
The AGM authorized the Board of Directors to decide on issuance of no more than
11.8 million new shares or own shares held by the Company. Furthermore, the AGM
decided to authorize the Board of Directors to repurchase no more than 3.8
million of the Company's own shares using the funds in the Company's invested
unrestricted equity.
Internal Group structuring
Salcomp sold R&D, sourcing, production and logistics know-how as well as
related business processes to its fully owned subsidiary Salcomp Manufacturing
Oy. The sale and transfer of the business was carried out on 31 December 2010.
Due to the sale and transfer of the business, a sales profit of EUR 35 million
was realized in the parent company. The sales profit increases the parent
company distributable funds by the same amount.
Risks and uncertainties in the near future
Salcomp's business involves uncertainty factors that may affect the company's
financial development in the near future. These include the general development
of the mobile phone markets, substantial changes in the purchase prices and
availability of materials and charger components, significant changes in labor
costs especially in China, as well as changes in the competition in the mobile
phone charger markets. Furthermore, changes in the market shares of customers
and deterioration in the financial position of a major customer may have a
negative effect on Salcomp's business.
Major changes in exchange rates can be considered one of the other short- term
uncertainty factors, especially the exchange rate of the US dollar in relation
to the euro and to currencies in those countries in which Salcomp has
production. In addition, the impact of the global economy on the stability of
the financial market, as well as accessibility of financing, has an influence
on Salcomp's business.
In the medium term, Salcomp's business may be affected by standardization
projects concerning mobile phone chargers in the different market areas. Due to
standardization, it is possible that in the future, in some market areas, some
of mobile phone kits will not include a separate mobile phone charger.
Risks are managed to the extent that the company has influence over them.
Further details on risks and risk management are available in the company web
site.
Events after the reporting period
There are no events after the reporting date which would have a significant
influence on the figures presented in the Financial Statements.
Corporate Governance Statement
Salcomp Plc's Corporate Governance Statement will be published as a separate
document from the Report of the Board of Directors simultaneously with the
Annual Report during week 9. The Corporate Governance Statement will also be
available on the company website.
The Board's proposal for profit distribution
The Board of Directors has adopted dividend principles whereby the Board
intends to annually propose to the General Meeting of Shareholders that no more
than one-third of the Group's average long-term result be distributed as
dividends, provided that the growth requirements stated in the company strategy
are not jeopardized. The amount of future dividend, if any, will be subject to
the company's future result, its financial position, cash flow, working capital
needs, capital expenditure, terms and conditions of financial agreements and
covenants, among other factors.
The Board will propose to the Annual General Meeting of Shareholders that a
dividend of a total of EUR 2,731,668.80 and EUR 0.07 per outstanding share for
2010 be distributed. Dividends determined at the General Meeting shall be
distributed to all shareholders, who on the record date of 29 March 2011 have
been entered in the shareholders' register held by Euroclear Finland Ltd.
According to the proposal, the dividend will not be distributed to shares in
the possession of the company.
Outlook for 2011
According to the estimates published by some of Salcomp's key customers and by
various market research companies, the mobile phone market is expected to grow
by some 7% during 2011, compared with 2010. Measured by the number of units,
this would mean approximately 1.35 billion mobile phones and, therefore, mobile
phone chargers, to be sold in 2011. The growth in other consumer electronics
markets is also estimated to continue in 2011.
In accordance with the growth in the number of units, low and medium power
range charging solutions (<150 W), including mobile phone chargers, are
estimated to grow by some 6% in 2011, resulting to a total market of some EUR
3.9 billion.
Salcomp's net sales in 2011 are expected to be EUR 280-320 million. The
operating margin in 2011 is expected to be 2-4% of the net sales. Due to the
strategy revision of a major customer, Salcomp's outlook for 2011 is more
uncertain than usual.
Helsinki 18 February 2011
Salcomp Plc
Board of Directors
Further information:
Markku Hangasjärvi, President and CEO, tel. +358 40 7310 114
Jari Saarinen, CFO, tel. +358 40 5004 206
A Finnish briefing for analysts and media will be held on 18 February 2011 at
13:00 Finnish time at Scandic Simonkenttä Hotel, Simonkatu 9, Helsinki. For
further information, contact Eevaleena Kiviaho via email
eevaleena.kiviaho@salcomp.com or by phone +358 40 720 8158.
A slide show presentation in English concerning the Financial Statements
Release will be available at Salcomp's web page, www.salcomp.com > Investors
after the disclosure of the stock exchange release.
Salcomp's Annual Report 2010 will be published during week 9 and the Interim
Report for January-March 2011 on 20 May 2011. The Annual General Meeting will
be held on Thursday, 24 March 2011.
Salcomp Plc's Consolidated Financial Statements Release has been prepared in
accordance with the international financial accounting standard IAS 34, Interim
Reports. The year-level information in this Financial Statements Release is
based on the audited Financial Statements.
CONDENSED FINANCIAL STATEMENTS AND NOTES
STATEMENT OF COMPREHENSIVE INCOME
(EUR 1 000)
1-12/2010 1-12/2009 Change %
Net sales 299 008 239 455 24.9%
Cost of sales -270 524 -213 167 26.9%
Gross margin 28 484 26 288 8.4%
Other operating income 110 90 22.2%
Sales and marketing -3 047 -2 063 47.7%
expenses
Administrative expenses -8 875 -8 685 2.2%
Research and development -6 884 -5 283 30.3%
expenses
Other operating expenses -76 -131 -42.0%
Operating result 9 712 10 216 -4.9%
Finance income 971 1 228 -20.9%
Finance expenses -1 660 -2 325 -28.6%
Result before tax 9 023 9 119 -1.1%
Income tax expenses -1 057 -3 861 -72.6%
Result for the period 7 966 5 258 51.5%
Other comprehensive income for the period
Exchange differences on translating foreign 2 449 3 069 -20.2%
operations
Other comprehensive income for the period, net 2 449 3 069 -20.2%
of tax
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 10 415 8 327 25.1%
Basic earnings per share, EUR 0.20 0.13 53.8%
Diluted earnings per share, EUR 0.20 0.13 53.8%
STATEMENT OF COMPREHENSIVE INCOME
(EUR 1 000)
10-12/2010 10-12/2009 Change %
Net sales 80 733 62 699 28.8%
Cost of sales -73 844 -55 522 33.0%
Gross margin 6 889 7 177 -4.0%
Other operating income 7 68 -89.7%
Sales and marketing -708 -548 29.2%
expenses
Administrative expenses -1 724 -2 325 -25.8%
Research and development -1 912 -1 318 45.1%
expenses
Other operating expenses -12 -22 -45.5%
Operating profit 2 540 3 032 -16.2%
Finance income 296 521 -43.2%
Finance expenses -290 -724 -59.9%
Profit before tax 2 546 2 829 -10.0%
Income tax expenses -296 -470 -37.0%
Profit for the period 2 250 2 359 -4.6%
Other comprehensive income for the period
Exchange differences on translating foreign 804 732 9.8%
operations
Other comprehensive income for the period, net 804 732 9.8%
of tax
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 3 054 3 091 -1.2%
Basic earnings per share, EUR 0.06 0.06 0.0%
Diluted earnings per share, EUR 0.06 0.06 0.0%
STATEMENT OF FINANCIAL POSITION
(EUR 1 000)
31.12.2010 31.12.2009 Change %
Non-current assets
Property, plant and equipment 25 281 19 886 27.1%
Goodwill 66 412 66 412 0.0%
Other intangible assets 830 405 104.9%
Deferred tax assets 4 023 3 180 26.5%
96 546 89 883 7.4%
Current assets
Inventories 37 246 20 329 83.2%
Trade and other receivables 46 233 32 623 41.7%
Cash and cash equivalents 18 553 18 872 -1.7%
102 032 71 824 42.1%
Total assets 198 578 161 707 22.8%
Equity and liabilities
Share capital 9 833 9 833 0.0%
Invested unrestricted equity 5 820 22 035 -73.6%
Retained earnings 64 881 40 741 59.3%
80 534 72 609 10.9%
Non-current liabilities
Deferred tax liabilities 17 317 17 313 0.0%
Capital loans 0 10 000 --
Interest-bearing liabilities 11 187 5 882 90.2%
28 504 33 195 -14.1%
Current liabilities
Trade and other payables 81 321 52 671 54.4%
Interest-bearing current liabilities 8 219 3 232 154.3%
89 540 55 903 60.2%
Total equity and liabilities 198 578 161 707 22.8%
STATEMENT OF CHANGES IN EQUITY
(EUR 1 000)
Attributable to equity holders of the parent
Share Invested Translation Retained Total
capital unrestricted differences earnings equity
equity
Equity on 1 Jan 2009 9 833 22 035 -784 32 695 63 779
Total comprehensive 0 0 3 069 5 258 8 327
income for the
period
Incentive plan 0 0 0 503 503
Equity on 31 Dec 2009 9 833 22 035 2 285 38 456 72 609
Equity on 1 Jan 2010 9 833 22 035 2 285 38 456 72 609
Total comprehensive 0 0 2 449 7 966 10 415
income for the
period
Share issue 0 96 0 0 96
Repayment of capital 0 -2 730 0 0 -2 730
Accumulated losses -13 581 0 13 581 0
covered
Incentive plans 0 0 0 144 144
Equity on 31 Dec 2010 9 833 5 820 4 734 60 147 80 534
STATEMENT OF CASH FLOWS
(EUR 1 000)
1-12/2010 1-12/2009 Change %
Cash flow before change in working capital 15 113 15 535 -2.7%
Change in working capital -2 878 -10 521 -72.6%
Financial items and taxes -2 562 -1 852 38.3%
Net cash flow from operating activities 9 673 3 162 205.9%
Purchases -8 950 -1 592 462.2%
Sales 19 64 -70.3%
Cash flows from investing activities -8 931 -1 528 484.5%
Cash flow before financing 742 1 634 -54.6%
Withdrawal of borrowings 20 794 27 000 -23.0%
Repayment of borrowings -20 583 -38 092 -46.0%
Share issue 96 0 --
Dividends* -2 730 0 --
Net cash flow from financing activities -2 423 -11 092 -78.2%
Change in cash and cash equivalents -1 681 -9 458 -82.2%
Cash and cash equivalents 18 872 26 590 -29.0%
at the beginning of the period
Translation difference 1 362 1 740 -21.7%
Cash and cash equivalents 18 553 18 872 -1.7%
at the end of the period
*repayment of capital
KEY FIGURES
1-12/2010 1-12/2009 Change %
Sold chargers, Mpcs 296.6 243.3 21.9%
Average sales price, EUR 1.01 0.98 2.9%
Net sales, MEUR 299.0 239.5 24.8%
EBITDA, MEUR 15.0 15.1 -0.7%
EBITDA%, % 5.0% 6.3%
Operating result, MEUR 9.7 10.2 -4.8%
Operating margin, % 3.2% 4.3%
Basic earnings per share, EUR 0.20 0.13 53.8%
Diluted earnings per share, EUR 0.20 0.13 53.8%
Earnings per share excluding deferred tax, EUR 0.20 0.20 0.0%
Equity per share, EUR 2.06 1.86 10.8%
Return on equity, % 10.4% 7.7%
Return on capital employed, % 11.1% 12.3%
Return on net assets, % 39.8% 61.2%
Equity ratio, % 40.6% 44.9%
Gearing, % 1.1% 0.3%
Capital expenditure, MEUR 9.0 1.6 459.4%
Capital expenditure, % of net sales 3.0% 0.7%
Personnel on average 9 825 7 312 34.4%
Personnel at the end of period 10 350 7 900 31.0%
Average number of shares outstanding 39 000 461 38 975 190
Number of shares outstanding at the end of 39 023 840 38 975 190
period
Diluted number of shares outstanding on 39 001 219 38 975 190
average
Highest share price, EUR 2.19 1.99
Lowest share price, EUR 1.73 1.15
Average share price, EUR 1.99 1.60
Traded shares, Mpcs 2.1 1.9
Traded shares, MEUR 4.2 3.1
NOTES TO THE INTERIM REPORT
This Interim Report has been prepared in accordance with the international
financial accounting standard IAS 34 Interim Reports. The same accounting
principles are applied in this Interim Report as in the Financial Statements.
Salcomp has, as of 1 January 2009, applied the revised IAS 1 Presentation of
Financial Statements standard, as well as the new IFRS 8 Operating Segments
standard. Other amended standards or interpretations have not affected this
Interim Report. Adoption of IFRS 8 has no impact on the number of reported
segments, but only on the notes presented in the Financial Statements. Salcomp
has one business segment, chargers. Internal management reporting complies with
the IFRS reporting and due to this, separate adjustments are not presented.
LIABILITIES
(EUR 1 000)
31.12.2010 31.12.2009 Change %
For own dept
Company and real estate mortgages 82 000 82 000 0.0%
Others 5 872 5 117 340.0%
Leasing and rental liabilities 5 382 7 359 -26.9%
93 254 89 364 4.4%
QUARTERLY INFORMATION
10-12/10 7-9/10 4-6/10 1-3/10 10-12/09
Sold chargers, 81 933 80 098 68 586 65 941 69 817
kpcs
Net sales, kEUR 80 733 86 470 72 170 59 635 62 699
Operating result, kEUR 2 540 3 365 2 327 1 480 3 032
Operating margin, % 3.1% 3.9% 3.2% 2.5% 4.8%
Average sales price, EUR 0.99 1.08 1.05 0.90 0.90
OPTION RIGHTS
During the financial year 2007, the General Meeting of Shareholders established
an option program with a total of 2,047,500 option rights that entitle to
subscribe the same amount of new shares of the company. The option program is
divided to symbols 2007A, 2007B and 2007C. The Board of Directors has not
granted option rights to Group key personnel during the financial year. The
share based incentives are conditional. The vesting conditions are based on
that the total shareholder return is at least 8 % per annum. Options are lost
when a person is leaving the company before the settlement period begins. The
Board of Directors can decide in these cases that the stock option owner is
entitled to keep the options or a part of them. The fair value has been
determined using the Cox-Ross-Rubinstein binomial model.
Program symbol 2007A 2007B 2007C Total
options
Number of options 657 500 682 500 707 500 2 047 500
Vesting period 1.4.2007 1.4.2008 1.4.2009
-- -- --
31.3.201 31.3.201 31.3.201
0 1 2
Options granted before the current 497 500 545 000 627 500 1 670 000
financial year
Options granted during the current 0 0 0
financial year
Options forfeited during the current -32 500 -37 500 0 -70 000
financial year
Settlement (shares / option) 1 1 1
Settlement period 1.4.2010 1.4.2011 1.4.2012
-- -- --
31.3.201 31.3.201 31.3.201
2 3 4
Grant date 02.05.07 07.05.08 11.08.09
Exercise price 2.81 3.33 1.40
Share price at grant date 3.51 3.79 1.51
The fair value of option at grant date 1.44 1.44 0.61
SHARE BASED INCENTIVE PROGRAMS
The Board of Directors of Salcomp Plc has approved two new share-based
incentive programs for the Group key personnel. The new programs are a Matching
Share Program targeted at the members of the Extended Global Management Team,
as well as a Performance Share Program targeted at 53 key employees including
also the members of the Extended Global Management Team. Both Programs include
one earning period, from calendar year 2010 to 2012. The potential rewards from
both the Matching and Performance Share programs will be paid partly in Company
shares and partly in cash during 2013. The cash payment is intended to cover
the personal taxes and tax-related costs arising from the reward. No reward
will be paid to a key person, if his or her employment or service in a Group
Company ends before the reward payment. The rewards to be paid on the basis of
the earning period will correspond to the value of maximum 603,000 Salcomp Plc
shares. Global Management Team can earn a total of 281,000 pcs of Salcomp Plc
shares during the total earning period. Releases relating to the new incentive
program have been issued in 19 May and 21 June 2010.
RELATED PARTY INFORMATION
(EUR 1 000)
Related party transactions with Nordstjernan 31.12.2010 31.12.2009 Change %
AB
Capital loans 0 10 000 --
Interest payable of capital loans 0 787 --
Sales of receivables 0 0 --
Interest expense of the period 553 787 -29.7%
Salcomp has renewed the financing arrangements in May. In this connection, the
capital loans have been repaid to Nordstjernan AB. Release on the issue has been
published on 25 May 2010.
OWN SHARES
31.12.2010 31.12.2009
Parent company own shares (pcs) 337 000 0
CALCULATION OF FINANCIAL RATIOS
Average personnel: Average number of personnel at end of each month
Return on equity (%) = Result for the period x 100 : Equity on average
Return on capital employed (%) = (Result before tax + interest charges and
other financial expenses) x 100 : (Total liabilities less interest-free debt
(on average))
Return on net assets (%) = Operating result x 100 : (Fixed assets less goodwill
and deferred tax assets + inventory + short-term receivables less short-term
interest-free debt on average)
Equity ratio (%) = Equity x 100 : Total liabilities less received advance
payments
Gearing (%) = (Interest-bearing debt less cash and cash equivalents) x 100 :
Equity
Earnings per share = Result for the period : Weighted average number of shares
outstanding during the period
Equity per share = Equity : number of shares outstanding at the end of period
Earnings per share, diluted = Result for the period : Weighted average number
of shares outstanding during the period, adjusted for the share issue
Markku Hangasjärvi, President and CEO, tel. +358 40 7310 114
Jari Saarinen, CFO, tel. +358 40 5004 206
© 2024 Nasdaq, Inc. All Rights Reserved |